Tigran Gambaryan, a high-ranking official at Binance, remains in custody in Nigeria without the possibility of bail in a complex case involving allegations of money laundering. Since February, Gambaryan has been at the center of a legal dispute that reflects the broader tensions surrounding cryptocurrency regulations.
Gambaryan’s Freedom Denied
According to reports, Judge Emeka Nwite denied Gambaryan’s request for bail, citing concerns about the high risk of him fleeing. The decision was made after the prosecution claimed that Gambaryan had attempted to replace his “stolen” passport under suspicious circumstances. The court fears that, like his colleague Nadeem Anjarwalla, who escaped custody in March, Gambaryan may also try to flee.
Ekele Iheanacho, leading the prosecution, emphasized that Gambaryan lacks ties to the local community in Nigeria, further supporting the argument that he is a flight risk. Gambaryan, along with Binance Holdings and Anjarwalla, is facing serious charges from the Economic and Financial Crimes Commission (EFCC), including funding terrorism and money laundering.
Cryptocurrency Faces More Controversies
Binance’s troubles in Nigeria began with a government crackdown on cryptocurrency to regulate currency speculation. Following their arrest in February, Nigerian authorities demanded that Binance provide access to the data of Nigerian users.
Amidst these tensions, Gambaryan filed a lawsuit against the Nigerian government, claiming that his rights were violated during his detention and the seizure of his passport. In response to the legal pressures, Binance halted all transactions involving the Nigerian naira and delisted naira trading pairs, signaling a significant retreat from the Nigerian market.
This decision came as risk consultancy firm SBM Intelligence warned that ongoing scandals involving Binance could damage Nigeria’s appeal to foreign investors.
Nigeria Allegedly Attempted to Bribe Binance
Adding to the drama, allegations surfaced in May suggesting that there were attempts to bribe Binance executives, including Gambaryan, with cryptocurrency just before their arrest. SBM Intelligence highlighted these allegations, stressing the need for thorough investigations to uphold the rule of law and maintain investor confidence.
Gambaryan’s situation is part of a larger issue within Binance’s global operations. In the United States, a separate case resulted in the former CEO of Binance being sentenced on similar charges.
These incidents collectively shed light on potential systemic problems within Binance, posing challenges to its reputation on a global scale.
